ELF Beauty Inc (ELF)

Current ratio

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Total current assets	US$ in thousands	477,077	303,325	193,029	170,144	132,360
Total current liabilities	US$ in thousands	299,115	107,976	65,017	73,331	51,123
Current ratio		1.59	2.81	2.97	2.32	2.59

March 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $477,077K ÷ $299,115K
= 1.59

ELF Beauty Inc's current ratio has exhibited fluctuations over the past five years. The current ratio measures the company's ability to cover its short-term obligations with its current assets. The ratio has declined from 2.59 in 2020 to 1.59 in 2024, indicating a decrease in the company's short-term liquidity position.

However, it is important to note that a current ratio above 1 indicates that ELF Beauty Inc has more current assets than current liabilities, which suggests that the company should be able to meet its short-term financial obligations. Comparing the current ratio to industry benchmarks and historical data can provide further insights into the company's liquidity position.

Overall, while the current ratio has decreased in the latest year, ELF Beauty Inc still appears to have a reasonable ability to cover its short-term liabilities with its current assets. Further analysis of the company's cash flow and working capital management may provide additional context to understand the trends in the current ratio.